Home
/
RELIGION & LIBERTY ONLINE
/
Trump and Clinton are wrong: free trade helps the poor
Trump and Clinton are wrong: free trade helps the poor
Jan 28, 2026 10:32 PM

Imagine if Donald Trump made a campaign promise that he would lower the pay of every American, but would ensure that the poorest 10 percent have their pay lowered the most. Would you vote for him then? Or imagine if Hillary Clinton said she would increase inflation substantially to make the economy more “fair” for everyone. Would she win your support?

Neither candidate has made such a claim—at least not directly. TheAmerican people would immediate reject such harmful economic policies,and politiciansknow they’d be rejectedfor makingsuch inane promises.

In reality, though, both Clinton and Trump (as well as the candidates for the Green Party, Constitution Party, and the American Solidarity Part) have promised to implement policies that would have the same effect as increasing inflation or reducing pay, for all have proposed a means of lowering purchasing power.

Purchasing power is the number of goods or services that can be purchased with a unit of currency. There are several methods politicians can use to reduce purchasing power, but one of the most subtle mon is to increase barriers to foreign trade. As Nita Ghei says,

The benefits of freer international trade accrue to consumers in theform of increased choice and lower prices. More imports mean more bang for the buck, and that effectively functions like an increase in pay. Consumers either buy imported goods directly, like the finished shirt from Bangladesh, or they can buy an American-made good that includes ponents. When American producers have access to cheaper imports, they can increase production, create jobs and offer goods at a lower price.

There is significant evidence that e Americans benefit substantially from imports, and higher trade barriers will impose a proportionately greater cost on the poor.

The poorest Americans tend to assume (mostly because they’ve been lied to by people that know better) that international trade hurts them. In fact, it is just the opposite, not only for those living in the U.S., but for the poor in almost every part of the world. As The Economist recently noted,

A study by Pablo Fajgelbaum of the University of California, Los Angeles, and Amit Khandelwal, of Columbia University, suggests that in an average country, people on high es would lose 28% of their purchasing power if borders were closed to trade. But the poorest 10% of consumers would lose 63% of their spending power, because they buy relatively more imported goods. The authors find a bias of trade in favour of poorer people in all 40 countries in their study, which included 13 developing countries.

If the lives of the poor are disproportionately improved by freer trade, then why do they so often oppose it? The main reason is because it’s much easier for them to see the negative effects of trade. If the factory you work at making widgets closes and the jobs move overseas, it’s easy to assume that the total economic effect is negative. What is more difficult to see is how many poor people are now able to buy widgets because they are being produced at a lower cost.

That is why protectionism has an innate appeal—it’s easy to see the effects—while free trade seems, well, foreign. Yet what many people don’t realize is that protectionism not only hurts the majority of consumers, it rarely helps the minority of workers it was intended to protect. As Ghei notes,

[P]rotectionist measures, like duties on steel, do little to halt the decline of that industry, which employs 140,000 people now, yet those duties inflict higher costs on steel-consuming industries, which employ over 12 million people.

Free trade is one of the few policies that almost all economists, whether on the left or right, agree is beneficial to the majority of the population. But economically ignorant politicians (see: Clinton and Trump) know that by championing protectionist policies (all while claiming that they are really for “free trade”) they can win the votes of people that don’t know better. That is why those of us who do know better have a duty to the poor to set the record straight. We can’t stop politicians from lying to them. But we can do our best to see that they discover the truth.

Comments
Welcome to mreligion comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
RELIGION & LIBERTY ONLINE
Should we give smartphones to the homeless?
Across the globe, extreme poverty has been reduced by the advent and ubiquity of a simple tool: cell phones. As USAID says, mobile phones “fundamentally transform the way people in the developing world interact with one another and their governments, and access basic health, education, business and financial services.” Could the same technology that is alleviating extreme poverty around the world also be used to help solve America’s homeless problem? In an intriguing paperby the America Enterprise Institute, Kevin C....
Just Render Unto Caesar Already: The IRS and Frivolous Tax Arguments
In an attempt to trap Jesus, some Pharisees and Herodians asked him, “Is it lawful to pay taxes to Caesar, or not? Should we pay them, or should we not?” In response, Jesus said, “Why put me to the test? Bring me a denarius and let me look at it.” And they brought one. And he said to them, “Whose likeness and inscription is this?” They said to him, “Caesar’s.” Jesus said to them, “Render to Caesar the things that...
Audio: Samuel Gregg on Rerum Novarum’s Relevance for Today
Acton Institute Director of Research Samuel Gregg is in Rome this week for Acton’s conference on the 125th anniversary of Pope Leo XIII’s ground-breaking encyclical Rerum Novarum.The conference – titled Freedom with Justice: Rerum Novarum and the New Things of Our Time – takes place on April 20th from 2-7:30 pm at the Roma-Trevi-Conference Center in Rome, Italy. Sam sat down for an in-depth interview with Vatican Radio about the encyclical and the conference, noting that “there are many things...
When Bernie Sanders met Pope Francis
ABC Breaking News | Latest News Videos Well, it finally happened. The pope felt the Bern. Against expectations, Pope Francis and Senator Bernie Sanders, the Democrat candidate for U.S. president, met privately today in the Vatican hotel where thepontiffresides and where Sanders was staying as a guest. Bernie Sanders was in Romefor the Pontifical Academy of Social Sciences meeting to discuss his economic, environmental and moral concerns (as summed up in Sanders’own words during the press scrum that followed). The...
Video: Rev. Sirico on Sanders at the Vatican
This afternoon, Acton Institute President Rev. Robert A. Sirico joinedhost Neil Cavuto on Fox Business Network’s Cavuto: Coast to Coast to discuss Democratic Presidential Candidate Bernie Sanders’ visit to the Vaticanto participate in a conference examining Pope John Paul II’s 1991 encyclicalCentesimus Annus. You can watch the video below. ...
Video: Rev. Robert Sirico tangles with Sen. Barbara Boxer on Energy, Environment
Video source: The Harry Read Me File. More clips from the hearing here. On Wednesday, the Rev. Robert A. Sirico, co-founder and president of the Acton Institute, testified at a hearing before the Senate Committee on Environment and Public works. The hearing aimed “to examine the role of environmental policies on access to energy and economic opportunity … ” A report at the Energy & Environment news service said the hearing was “full of fireworks.” It was convened by Sen....
Samuel Gregg: How Bernie Sanders spins a papal encyclical
At The Stream, Acton Institute Research Director Samuel Gregg does a crime scene investigation of Bernie Sanders’ take on Pope John Paul II’s Centesimus Annus encyclical. You might never guess, by listening to the Democrat presidential candidate, that John Paul actually had some positive things to say about the market economy. Gregg says that Sanders’ recent appearance at a Vatican conference “will be seen for what it is: grandstanding by a left-wing populist candidate for the American presidency.” Aside from...
The Correlation Between GDP and Human Flourishing
Recently we considered a simple tool and metric for measuring economic well-being: real GDP per capita. Yet such metrics feel can seem materialistic. What about the things that money can’t buy, we wonder, like health and happiness? As economist Alex Tabarrok explains, while real GDP is an imperfect measure, it tends to be correlated with many of the non-monetary improvements that contribute to human flourishing. ...
Pope’s ‘sad journey’ to Lesbos challenges EU Immigration Policy
Pope Francis’ words to journalistson board the chartedflight yesterday to the Greek island of Lesbos struck an emotional chord:“It is a sad journey,” he said. “We are going to see the greatest humanitarian tragedy after World War II.” As Francis deplaned he was greeted by Greek Prime Minister Alexis Tsipras. The pope expressed his gratitude for Greece’sgenerosity to Middle Eastern refugees, many of e to Europe fleeing from desperate situations. Francis spent only 5 hours on the small Greek island...
Video: Acton Institute Preview of April 20 Rerum Novarum Conference in Rome
The Acton Institute issued a video statement to the international press today from its Rome office, introducing the main topics that to be addressed at its April 20th Rome conference “Freedom with Justice: Rerum Novarum and the New Things of Our Time” at the Roma-Trevi Conference Center. Among the “new things” to be discussed for the 125th anniversary of Leo’s landmark social encyclical will be the Church and poverty, Europe’s faltering welfare states, globalization’s winners and losers, youth unemployment, our...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved